When you buy something you use in your business, E.g: Business vehicles, cars, vans, lorries or tools of trade.

Vehicles

Capital Allowances (depriciation) can be claimed for the cost of the vehicle, whether new or used when purchased.

The rate is 18% for vehicles with CO2 emissions below 130g/km, and 8% for vehicles with CO2 emissions above 130g/km.

You don't need to work this out; the app does it for you. You just need to enter the opening value of the vehicle and the CO2 emissions (found on your V5).

Plant & Machinery

Tools of trade can be claimed in full in the tax period they are purchased and should be entered as an Expense.

To enter vehicle details for depreciation:-

Click on "tax return" tab, "proceed", "basic details", select "vehicle details" answer the Yes/No question and follow from there.

Note:

You cannot claim capital allowance if you are using Mileage Allowance.

You cannot claim capital allowances if you use your £1,000 tax-free 'trading allowance'.